Landal Greenparks lodge investment

Bunnymahoney

@HappyHarry @jimjames @dunstonh

Thanks for your further comments and insights - this isn't for me. I don't know the answers to some of the questions, so this clearly isn't something I should be investing in. From what I've understood so far I don't feel compelled to waste anymore time getting these answers either. I'm out! 

Thanks all 

jimjames

@Bunnymahoney thanks for coming back to us.

Hopefully the info here might be of use for others that are considering an investment in Landal Greenparks holiday park lodges

bostonerimus

I only read the post title...that's all I need. It sounds dubious and why would you invest in anything other than regulated funds from established companies like Vanguard, Fidelity, HSBC, iShares etc? 

barnstar2077

Your phone number and details may have been added to a list.  Ignore any future letters or phone calls offering you investment opportunities.  

AnotherJoe

dunstonh said:

This is the link they gave me for the FCA - https://register.fca.org.uk/s/firm?id=001b000000MfR2sAAF (if I'm allowed to post links. It is actually in the name of Awaze who they say they are part of). 

The FCA register indicates that the only investment class permissions held is advising on P2P agreements.   So, what permissions are they using that are relevant to this transaction?

A firm being regulated by the FCA does not automatically mean you get protection in areas that they are not regulated in.  As it stands, I am struggling to see the relevance of FCA authorisation for this sort of transaction.

The relevance is all in the window dressing it provides.

Zanderman

Bunnymahoney said:

·       Invest £104,950 in a lodge in a new development in Scotland.

·       Guaranteed income of £8,396 per annum, paid quarterly (including all mgt. fees, so that is 8% NET yield) = total £41,980 over 5 years

·       Compulsory buy-back after 5 years, with a guaranteed price of £104,950 (purchase price) plus 10% uplift = £115,445

This last bit is particularly ludicrous. 
A holiday lodge that increases in value?
Holiday lodges always decrease in value.
They're temporary buildings that get prematurely worn out by multiple holidaying tenants. 
How can they possible increase in value, let alone keep their original value? 
A lodge isn't a bricks and mortar building, it's just a big shed.
The bit about it being freehold sounds a bit promising but a freehold has no value if it's landlocked by a third party that can control access and rights, which this will be. So it might as well be leasehold as that's what it will be, in effect.

jimjames

I had a look at their website https://www.landal-belvedere.com/. In very faint grey text at the bottom is the following disclaimer which gives the names of the companies involved. Interesting that the website is a single page with no other financial information shown so everything else will be private communications to the person enquiring.

The company behind it was only registered in May 2020 with £300 share capital https://find-and-update.company-information.service.gov.uk/company/12598903 and has yet to file accounts. Have a think how a company valued at £300 can guarantee your £100,000 money back.

The person behind these companies also previous ran a company called Logan Luxury Investments which is currently in administration but he seems to have had a frenzy of setting up companies in 2020. 

The FCA info you've been given is also rather misleading as it's nothing to do with the company that your investment is with so offers no protection to you even if the activity was covered.

DISCLAIMER: *We respect our clients' privacy. Your personal details will not be shared with third parties. By submitting your details you consent to be contacted by Landal Belvedere Developments Ltd, and/or by our partner Belvedere Resorts Ltd, by telephone and email for this and similar marketing material.

**All information distributed to our customers and business partners is produced in good faith and believed to be correct at the time of sending to the best of our knowledge, but should not be relied upon as a statement of fact.

The value of property can go down as well as up. Past performance is not an indicator of future performance. It is possible to get out less than you put into property investments. Landal Belvedere is not regulated by the FCA. Clients should consult their financial advisors if unsure.

All financial information contained within this webpage is provided as a guideline only, is subject to change and does not constitute a contract.

ivormonee

Is this their website https://www.landal.co.uk/ ? Says they've (Landal Green Parks) been going since 1954. ?

jimjames

ivormonee said:

Is this their website https://www.landal.co.uk/ ? Says they've (Landal Green Parks) been going since 1954. ?

No, it's https://www.landal-belvedere.com/

Mentioning companies with billions in revenue is irrelevant if the entity you're dealing with has £300 and under a 1 year history.

k12479

jimjames said:

ivormonee said:

Is this their website https://www.landal.co.uk/ ? Says they've (Landal Green Parks) been going since 1954. ?

No, it's https://www.landal-belvedere.com/

Mentioning companies with billions in revenue is irrelevant if the entity you're dealing with has £300 and under a 1 year history.

There's also https://belvedereresorts.com/ which has a little more detail and the crucial line:

Disclaimer: The land and the development is not the responsibility of Landal GreenParks nor the Awaze Group and it is the landowner developers’ duty and responsibility to fulfil the development obligations and strategy for investors.

There's details on Belvedere's bond here https://www.belvedereleisureresortsplc.com/ with two particularly important points:

The Bonds shall be secured by a first, fixed charge over (inter alia) all future real estate and goodwill...

Which suggests the investment would not include the freehold, as stated by the OP, and:

 Landal GreenParks will be responsible for all bookings, occupancy and management of the resort and revenues are shared between both parties in line with the 25 year marketing and management services agreement which is legally in force.

As mentioned by jimjames, Landal/Awaze and their billions are largely irrelevant, they operate the place, that's all. If Belvedere fail or don't stick to their guarantees, Awaze/Landal won't be on the hook.

It doesn't, at a glance, appear to be a scam, but still best handled via bargepole.